Members Login
Username 
 
Password 
    Remember Me  
Flickr Photo Pool -> Airliners-India -> Civil Aviation -> Jet Delays share sale
Post Info TOPIC: Jet Delays share sale
himmat01


Member

Status: Offline
Posts: 318
Date:
Jet Delays share sale
Permalink Closed

From Bloomberg.

Jet Airways delays share sale

Jet Airways (India) Ltd., whose shares have fallen by a third since its initial public offering, has delayed an additional $300 million sale after the local stock market had its biggest monthly decline in two years.

Jet Airways now plans to sell the shares to Indian investors by October after delaying the sale from the end of August, Chief Financial Officer Carl Saldanha said in a May 31 interview in Mumbai, where the nation's biggest domestic airline is based. The airliner may next month sell $500 million of overseas bonds that could be converted into stock, Saldanha said.

Overseas investors are shunning Indian stocks on concern they are expensive after four straight years of gains for the Sensex index. India's benchmark index fell 14 percent last month and Deccan Aviation Ltd., which owns India's biggest low-fare airline, could lure investors to its IPO only after cutting the sale price and extending the bidding date.

``These are not the best of times for airlines to come out with public issues,'' said R.K. Gupta, the chief executive officer of Credit Capital Asset Management in New Delhi. ``The markets are nervous and apart from that, the airline industry has its own set of problems.''

Jet Airways, owned by billionaire Naresh Goyal, needs money to partly finance the planes it has ordered from Airbus SAS and Boeing Co. The carrier has 20 planes on order from Boeing and 10 from Airbus, with an option to buy another 20 planes to add to its fleet of 51 planes.

`Market Situation'

``In the last couple of weeks the market situation has deteriorated,'' Saldanha said. ``We're just watching it for a while before we go ahead with it.''

Shares of Jet Airways fell 0.5 percent to 734.9 rupees in Mumbai yesterday. The carrier sold 19 billion rupees ($410 million) of shares in a February 2005 IPO at 1,100 rupees each. The stock declined to as low as 700 rupees on May 25.

Only one of the six banks that managed the Jet Airways IPO has a ``buy'' rating on the stock, according to data compiled by Bloomberg. Out of the 18 analysts that cover the Mumbai-based airline's stock, only two have a ``buy'' rating.

Jet Airways isn't the only airline in India that is losing favor with investors. Deccan Aviation, which operates the Air Deccan low-fare carrier, last month raised 16 percent less money than targeted in its IPO after cutting the sale price to attract investors.

JPMorgan Chase & Co. and ABN Amro Holdings NV backed out of managing the IPO of Deccan Aviation, which also runs the nation's largest helicopter charter business, citing ``scheduling'' issues.

Overseas Sale

Jet Airways hasn't completely abandoned a plan to sell shares overseas, Saldanha said. The carrier said April 29 it was shelving the plan because it was more attractive to raise money in the Indian market.

``We can still do a GDR, but we're focusing on a local issue right now,'' Saldanha said. ``If the market is very good at that point in time, we can still consider doing a GDR.''

Jet Airways hasn't appointed a bank for the public issue, he said. The Indian units of HSBC Holdings Plc, Deutsche Bank AG, UBS AG, Citigroup Inc. and Merrill Lynch & Co., along with Kotak Mahindra Bank Ltd., managed the February 2005 IPO.

Jet Airways will turn to other sources of financing if its share price continues to fall, Saldanha said.

``We will simply go and use our alternate sources of funds until the market situation gives us a good deal,'' he said. ``We have debt sources, other sources from the bank market.''

__________________
karatecatman


Member

Status: Offline
Posts: 2289
Date:
Air Deccan IPO
Permalink Closed

Air Deccan postpones public issue listing  


Zee News



Mumbai, June 09: Low-budget carrier Deccan Aviation has postponed listing of its much-discussed IPO and is likely to get listed on June 12.


"We have postponed the listing...It is likely to happen by beginning of next week," company sources said here.


The IPO fell into controversy from its first day of opening as it saw markets crashing by over 800 points on May 18.


The issue consisting of 2.45 crore equity shares was to be closed on May 23, but due to poor market response it was extended till May 26. Also, the price band was lowered from Rs 150-175 per share to Rs 146-175.


On May 26, the issue was finally oversubscribed 1.23 times with Qualified Institutional Buyers portion being subscribed 1.08 times.


The Non Institutional Investors also subscribed 1.15 time and the retail portion was suscribed 1.4565 times.


Deccan, which launched its first flight in August 2003 with an ATR turboprop aircraft, has 30 planes flying to 55 destinations and just above 14 per cent of the domestic market.


It posted a net loss of Rs 19.5 crore in the year 2004-05 with revenue of Rs 32 crore.


 


 



__________________
KCM
vivekman


Member

Status: Offline
Posts: 527
Date:
RE: Jet Delays share sale
Permalink Closed


Inaugurations & Air Deccan are just not meant for each other! Their inaugural flight was a disaster and now this!


karatecatman wrote:

The IPO fell into controversy from its first day of opening as it saw markets crashing by over 800 points on May 18.



__________________
the_380


Member

Status: Offline
Posts: 2450
Date:
Permalink Closed

well DN is in hell trouble if it does not recover money from the share market cos the fate of its 30 A320s are depended on the money he gets from the IPO

__________________
Light travels faster than sound...thats why people appear bright, until you hear them talk!
Aseem


Member

Status: Offline
Posts: 599
Date:
Permalink Closed

karatecatman wrote:

Air Deccan postpones public issue listing   Zee News Mumbai, June 09:

my dear friend make it a habit to post link...please!!


rgds


VT-ASJ



__________________
Vive Le YYZ
Aseem


Member

Status: Offline
Posts: 599
Date:
Permalink Closed

the last I heard was that their IPO was undersubscribed, now howcome have they delayed it.


rgds


VT-ASJ 



__________________
Vive Le YYZ
karatecatman


Member

Status: Offline
Posts: 2289
Date:
Permalink Closed

http://in.today.reuters.com/News/newsArticle.aspx?type=businessNews&storyID=2006-06-12T182324Z_01_NOOTR_RTRJONC_0_India-254137-3.xml


News about Air Deccan shares


Deccan Aviation shares dive a third on debut
Jun 12, 2006 6:35 PM IST
By M.C. Govardhana Rangan


MUMBAI (Reuters) - Shares in Deccan Aviation Ltd. nosedived by a third on their debut on Monday as investors baulked at the discount airline's valuation of 0.8 times forecast sales.


The disappointing start could make it difficult for other new offerings in the pipeline, analysts said, including that of property firm DLF Universal Ltd., which aims to raise more than $2 billion in what could become India's largest IPO.


"The bankers and companies will be more realistic from now on and we can see issues getting priced at reasonable price to earnings multiples," said Arun Kejriwal, strategist at research firm KRIS.


Deccan's stock fell as low as 97.05 rupees on Monday after starting 22 percent below the IPO price of 148 rupees a share. It closed at 98.85 rupees, down 33.2 percent from the IPO price.


The low-cost carrier has had a bumpy ride since starting a scheduled service in 2003. One of its earliest flights, on which it was carrying the civil aviation minister, had to be aborted due to a minor fire, and the day its IPO opened for subscription in May the stock market tumbled more than 800 points.


Deccan initially set a price band of 150-175 rupees a share for the IPO but cut it to 146-175 rupees because of poor demand as a result of stock market turbulence.


In the end it sold 24.55 million shares and raised 3.63 billion rupees ($79 million) -- less than an initially planned $250-$300 million and below the last IPO by an Indian carrier in 2004, which raised $435 million for Jet Airways. Jet shares are now trading at about 13.8 times forecast earnings.


Analysts have forecast Deccan to turn a profit in the fiscal year ending in March 2008. It posted a net loss of 195 million rupees on revenue of 3.2 billion for the year ended March 2005, the last year for which it has released results.


For founder and Chief Executive G.R. Gopinath, a former army captain, the debut is likely to have been a disappointment but analysts doubted he would be daunted.


"As a person and as an entrepreneur with a vision, he's remarkable," said Kapil Kaul, chief executive of the Centre for Asia-Pacific Aviation consultancy in India.


"In 2010, there will only be two to three airlines in the domestic sector that are valuable. Air Deccan could be one of them if he sets his house right."


GAME OVER FOR HIGH-PRICED IPOS?


Deccan's losses on its first trading day could put an end to expensive valuations that bankers and founders have been demanding in recent first-time issues, pricing IPOs at more than 20 times their forward earnings.


Construction firm Unity Infraprojects Ltd., which also listed on Monday, slid more than 30 percent, outpacing a 3.4-percent decline on the main index.


Its shares dropped as low as 462.10 rupees against its IPO price of 675 rupees before pulling back to 471.70 rupees. The firm raised 2.32 billion rupees ($50.5 million).


Part of the problem has been a month-long market slide as international investors pull out of emerging markets, hurting many newly listed shares. The main Mumbai index has fallen 25 percent since hitting an all-time peak in early May.


Earlier this year investors in Indian IPOs were raking in huge profits at their market debut as the stock market roared higher on the back of robust 8 percent economic expansion.


Media company Sun TV Ltd., whose April IPO was subscribed 45 times, opened 23 percent above its IPO price and refiner Reliance Petroleum Ltd., which was oversubscribed 50 times, began trading at a 67-percent premium.


Other shares that listed over the past few months, such as GVK Power & Infrastructure Ltd. and Visa Steel Ltd., have dropped below their IPO price after gaining at the start.


Visa ended at 26.25 rupees a share on Monday, less than half its IPO price of 57 rupees, while GVK closed 46 percent below its IPO price.


(Additional reporting by Rina Chandran in Mumbai)


 


© Reuters 2006. All Rights Reserved.



 
 



__________________
KCM
karatecatman


Member

Status: Offline
Posts: 2289
Date:
Permalink Closed

SEE NEW LINK


More fleet: Jet knocks on SBI's door for $600 mn



__________________
KCM
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
Flickr Photo Pool -> Airliners-India -> Civil Aviation -> Jet Delays share sale
Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard